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BusinessBusinessBusinessBusinessPlanPlanPlanPlan
ForanEUEUEUEUEnvironmentalEnvironmentalEnvironmentalEnvironmentalTechnologiesVerification(ETV)TechnologiesVerification(ETV)TechnologiesVerification(ETV)TechnologiesVerification(ETV)
SchemeSchemeSchemeScheme
October2009
ReportpreparedbyBetaTechnology
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Contact:
CarolineWadsworth
BetaTechnologyLimited
BarclayCourtDoncasterCarr
Doncaster
DN45HZ
Tel:01302322633
Fax:01302388800
Email:[email protected]
Website:www.betatechnology.co.uk
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TableofContentsTableofContentsTableofContentsTableofContents
EXECUTIVESUMMARYEXECUTIVESUMMARYEXECUTIVESUMMARYEXECUTIVESUMMARY............................................................................................................................................................................................................................................................................................................................................................................................................................................................ 4444
INTRODUCTIOINTRODUCTIOINTRODUCTIOINTRODUCTIONNNN........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6666
1.1.1.1. MISSIONANDOBJECTIVMISSIONANDOBJECTIVMISSIONANDOBJECTIVMISSIONANDOBJECTIVESESESES ........................................................................................................................................................................................................................................................................................................................................................................................ 7777
2.1.MISSION -----------------------------------------------------------------------------------------------------------------7
2.2.OBJECTIVES ------------------------------------------------------------------------------------------------------------7
2.2.2.2. DESIGNOFANEUETVDESIGNOFANEUETVDESIGNOFANEUETVDESIGNOFANEUETVSYSTEMSYSTEMSYSTEMSYSTEM ........................................................................................................................................................................................................................................................................................................................................................ 8888
3.1.KEY LESSONS LEARNED FROM TRITECH-ETV -------------------------------------------------------------------8
3.2.CONCLUSIONS FROM THE INSTITUTE FOR PROSPECTIVE TECHNOLOGICAL STUDIES (IPTS) ----------10
3.3.3.3. ORGANISATIONANDMANORGANISATIONANDMANORGANISATIONANDMANORGANISATIONANDMANAGEMENTAGEMENTAGEMENTAGEMENT .................................................................................................................................................................................................................................................................................................................... 17171717
4.4.4.4. MARKETANALMARKETANALMARKETANALMARKETANALYSISYSISYSISYSIS .................................................................................................................................................................................................................................................................................................................................................................................................................................... 22222222
4.1.THE ENVIRONMENTAL TECHNOLOGIES MARKET--------------------------------------------------------------- 22
5.5.5.5. STRATEGYSTRATEGYSTRATEGYSTRATEGY ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 27272727
5.1.SCOPE----------------------------------------------------------------------------------------------------------------- 27
5.2.OPERATION ----------------------------------------------------------------------------------------------------------- 30
5.3.PROMOTION ---------------------------------------------------------------------------------------------------------- 32
5.4.VERIFICATION METHODOLOGY ------------------------------------------------------------------------------------ 33
5.5.APPROVAL OF TEST CENTRES ------------------------------------------------------------------------------------ 35
6.6.6.6. FINANCIALPLANFINANCIALPLANFINANCIALPLANFINANCIALPLAN .................................................................................................................................................................................................................................................................................................................................................................................................................................................... 36363636
6.1.BACKGROUND-------------------------------------------------------------------------------------------------------- 36
6.2.EU-ETVBUDGET---------------------------------------------------------------------------------------------------- 38
7.7.7.7. IMPLEMENTATIONPLANIMPLEMENTATIONPLANIMPLEMENTATIONPLANIMPLEMENTATIONPLAN.................................................................................................................................................................................................................................................................................................................................................................................................... 40404040
APPENDIX1:VERIFICAAPPENDIX1:VERIFICAAPPENDIX1:VERIFICAAPPENDIX1:VERIFICATIONMETHODOLOGYTIONMETHODOLOGYTIONMETHODOLOGYTIONMETHODOLOGY.................................................................................................................................................................................................................................................................................................... 42424242
APPENDIX2:APPENDIX2:APPENDIX2:APPENDIX2:COMPETENCEPROFILEFCOMPETENCEPROFILEFCOMPETENCEPROFILEFCOMPETENCEPROFILEFORAPPROVEDTESTCENORAPPROVEDTESTCENORAPPROVEDTESTCENORAPPROVEDTESTCENTRESTRESTRESTRES ........................................................................................................................ 55555555
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EXECUTIVESUMMARYEXECUTIVESUMMARYEXECUTIVESUMMARYEXECUTIVESUMMARY
Innovativeenvironmentaltechnologiesareurgentlyneededtoprovidesolutionstothemajorenvironmental
challenges faced by Europe and the world, including: climate change, scarcity and unsustainable use ofresources and loss of biodiversity. However, new technologies face difficulties in convincing the first
customersandinvestorsoftheirmerits;theirdifficultytopenetratethemarketortobediffusedtopotential
customersisabarriertoeco-innovativecompaniesbenefitingfromtheirnewtechnologies,tousersintapping
intonewtechnologicalsolutionsandtopolicy-makersinachievingpolicygoalsrapidlyandcost-efficiently.
ThisBusinessPlanproposesaEU-wideEnvironmentalTechnologyVerification(EU-ETV)scheme,basedon
theresultsofarecentlycompletedpilotETVschemefundedthroughtheEUsLIFEprogramme(TritechETV)
andotherrecentstudiesofETVschemes.
TheproposedEU-ETVschemewouldprovide independentandcredible informationonnewenvironmental
technologies,onavoluntarybasis,byverifyingthatperformanceclaimsputforwardbytechnologydevelopers
andvendorsarecomplete,fairandbasedonreliabletestresults.Theobjectivesarethree-fold:
Tohelp developers andvendors,especiallySMEs,provideobjectiveand reliable evidenceon the
performanceofneweco-technologiesarrivingonthemarket,
Tosupporttechnologypurchasers(publicorprivate)basetheirdecisionsonsoundinformation,and
To facilitate the implementation of public policies and regulations in a more flexible way than
traditionalcommand-and-controlmechanisms.
TheEU-ETVsystemwouldbegininafewtechnologyareasandwouldenlargeitsscopeprogressively.Itis
proposedthatthefollowingareaswillformtheinitialscopeoftheEU-ETV:
1. Monitoringtechniques
2. Waterandsoilstreatmenttechnologies
3. Renewablesourcesofenergyandenergyefficiency
4. AirpollutionabatementincludingGHG
5. Cleantechnologiesincludingwasteandresourcerecycling
Together,thesetechnologyareasrepresentsome55%oftheLCEGSindustry.
Amanagementandorganisationstructureisproposedthatisbasedonconclusionsandlessonsfromrecent
studiesandbestpractice.TheEU-ETVwillbeoperatedonbehalfoftheEuropeanCommissionbyapublicly-
fundedCentral VerificationOrganisation (CVO), In this role, a public body would enhance the schemes
credibilityrelativetoaprivatesectorbody.TheCVOwillappointanumberofVerificationBodies(VBs)that
willbethematicallyfocusedaroundthekeytechnologyareaslistedabove.TheseVBscouldbeprivatesector
organisations and would require part public and part private financing public financing for the general
operationandoverheadsassociatedwiththeschemeandprivatefinancingintheformofacontributionby
vendorsto thecostsof verification.Verificationby theVBswillrequiretheuseof accreditedexperts inthe
formofVerificationPanels.
ThesizeandkeylocationsforeachofthetechnologysectorswithinthescopeoftheEU-ETVwillrequirea
flexible approach to the establishment of thematic VBs. It is envisaged that the following numbers andlocationsofVBswouldberequired:
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No.ofVBs Locations
Monitoringtechniques 1 Centrallocation,perhapsBelgium
Waterandsoilstreatmenttechnologies 2to3 Germany,UK,France
Renewablesourcesofenergy&energyefficiency 4to5 Germany,UK,France,Spain,Italy
AirpollutionabatementincludingGHG 1 Centrallocation,perhapsBelgium
Cleantechnologiesincludingwaste&resourcerecycling 4to5 Germany,UK,France,Spain,Italy
TheverificationprocessintheEU-ETVschemewouldnotinvolvetesting.TheroleoftheVBswill
beinverifyingthedatathatarepresentedtotheVBbythevendor.However,theVBswillhavea
role in accrediting Testing Centres and ensuring that they comply with quality and technical
standardsmandatedbytheCVO.
TheEU-ETVschemewill incorporateahighdegreeofstakeholderinvolvementthroughTechnical
Groups andAdvisoryFora. Finally, it isenvisaged thateachMemberStatewouldhaveNational
Contact Points to act as an entry point for vendors, reducing geographical, language or
administrativebarriersbyexplainingtovendorstheETVconceptanditsbenefits.
ThebasicfeaturesoftheEU-ETVwouldbefixedinEUlegislationestablishingtheETVscheme.
The main documents defining the procedures followed by EU-ETV, in particular the list of
technologyareascoveredbyEU-ETV,theGeneralProtocolandQualityManagementSystem,and
specificprotocolswhereappropriate,shouldbeadoptedbytheCommissionusingusualCommittee
procedures where Member States experts are involved. Technical standards (ISO, IEC, CEN,Cenelec) will be used extensively where available, in particular for testing methods. Standards
developmentwillbeencouragedtoaccompanythedevelopmentofEU-ETVandfacilitateitswider
recognition,includingwithnon-EUprogrammes.
A comprehensive methodology for the verification process has been developed as part of the
Tritech-ETVprojectanditisproposedthatthismethodologybeadoptedintheEU-ETVscheme.
The processwould beweb-enabled in order to ensure efficiency and ease of operation for the
vendorsandfortheVBs.
AbudgetfortheoperationoftheEU-ETVhasbeenestimatedbasedonexperienceinnon-EUETV
schemesandtheTritech-ETVpilot scheme.TheEUBudgetwouldcover theadministrativecost
relatedtotheEU-ETVintheCommission(throughtheCVO),thecostsassociatedwithmeetingsof
the Technical Groups and the Advisory Fora, Verification Bodies administration costs and
subsidisationofverificationcosts,focusedonfacilitatingtheaccessofSMEstothesystem.Based
onthehypothesisthatthenumberofverificationswouldincreaseprogressivelyupto200overthe
firstfiveyearsofimplementationoftheEU-ETVscheme(atasettled-downrateof60peryear),the
costfortheEUbudgetisestimatedtobearound4millionEurosperyear4millionEurosperyear4millionEurosperyear4millionEurosperyear.
Finally,anoutlineimplementationplanispresented,focusingonthekeyactionsthatarerequiredtoestablishtheEU-ETVschemedescribedinthisBusinessPlan.
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INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION
Sustainabledevelopmentisat thecoreoftheEuropeanUnions(EU)objectives.InOctober2003,
theEuropeanCouncil recognised thepotential synergies betweenenvironmental protection andeconomicgrowth,andsawenvironmentaltechnologiesasthekeytosuccessinbothoftheseareas.
With this in mind, the EU adopted the Environmental Technologies Action Plan (ETAP) early in
2004.Theactionplanaimstoharnessthefullpotential(ofenvironmentaltechnologies)toreduce
pressuresonournaturalresources,improvethequalityoflifeofEuropeancitizensandstimulate
economicgrowth1.Threemainareasof actionare proposed intheplan, including Getting from
ResearchtoMarketapriorityactionwithinthisisimprovingtesting,performanceverificationand
standardisationrelatedtoenvironmentaltechnologies.
For a technologyproducer, particularlywheretheyare anSME, it isoftendifficult toconvincea
potential investororpurchaser that theirproductdoesastheyclaimitdoes.Toovercomethese
barriers,severalverificationprogramshavebeenadoptedincountriesoutsideoftheEUinorderto
provide users of the technologies with greater certainty in their purchasing decisions. Such a
mechanism,thatindependentlyandobjectivelyvalidatestheperformanceofanewproduct,would
instilconfidenceinbothpurchasersandinvestors,andthushelpvendorstomakethestepbetween
pilotstageandcommercialisationoftechnologiesfaster.Theseschemeshavebecomeknownas
EnvironmentalTechnologiesVerification(ETV)systems.
NationalverificationprogramshavebeenrunningforalmosttenyearsintheUS,CanadaandSouthKorea.Japanstartedaprogramin2002,whichisstillinapilotphase.Manyothercountries,mainly
inAsia,havebeencontactedbytheNorthAmericansand,asaresult,Chinaisnowabouttolaunch
a national verification programme basedon the Canadian system. However, there is no similar
technology verification approach established in Europe, despite the fact that most stakeholders
considersuchaschemeonaEuropeanleveltobeofsignificantimportanceforthedisseminationof
environmentaltechnologiesandforthecompetitivenessofthisindustry.
Asa responseto this, theEuropeanCommissionhasbeenrunninga numberofprogrammes to
better understandhowa robust ETV scheme canbebest establishedacross Europe.One such
programme, Tritech ETV, has recently completed a pilot scheme for the verification of
environmental technologies under funding through the EUs LIFE programme. The main aim of
TritechETVwastoestablishaworkingmethodologyfortheverificationoftechnologiesinthefield
ofwaste water treatment, soil remediation and energy. A total of 15 technologies were verified
duringtheproject,themechanismsestablishedandevaluatedandtheresultsreportedtotheEC.
An EU-wide ETV system would verify the performance characteristics of new environmental
technologies through commonly recognised and transparent protocols. In thiscontext, to verify
1(StimulatingTechnologiesforSustainableDevelopmentAnEnvironmentalTechnologiesActionPlanforthe
EuropeanUnion,2004)
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means to establish or prove the truth of the performance of a technology, under specific
predeterminedcriteriaorprotocolsandadequatedataqualityassuranceprocedures.Itisimportant
tonotethatverificationisnotthesameascertification;thescopeofverificationistheindependent
assessment of a vendors claims regarding the performance of their technology without makingfurthervalue-basedjudgementsof it.Ontheotherhand,certificationusually impliesaguarantee
thatthetechnologymeetsspecificstandards.Withnewtechnologies,suchstandardsmaynotyet
existandwhilecertificationinthesecaseswouldnotbepossible,verificationofclaimscanstillbe
made.
This Business Plan draws from the lessons learned during Tritech ETV, together with lessons
learnedfromotherEU-supportedprojectsinthisareaandfromanexaminationofinternationalbest
practice.TheBusinessPlanproposesamodelforanEU-wideETVsystemandanoutlinestrategy
andplanforitsimplementation.
1.1.1.1. MISSIONANDOBJECTIVMISSIONANDOBJECTIVMISSIONANDOBJECTIVMISSIONANDOBJECTIVESESESES
2.1.Mission
ThemissionofanEU-ETVschemewouldbe toprovide: (i) usersofenvironmental technologies
with confidence in the technology they are investing in, and (ii) vendors of environmental
technologieswithanaccreditation for their products.Ultimately,anEU-ETVschemewillmakea
substantialcontributiontothecompetitivenessoftheEUsenvironmentaltechnologiesmarketand
boostlevelsofinvestmentinthedevelopmentofnewtechnologies.
2.2.Objectives
TheobjectivesofanEU-ETVschemewouldbeto:
Remove key obstacles currently preventing the realisation of the full potential of
environmental technologies for protecting the environment, while at the same time
contributingtocompetitivenessandeconomicgrowth, EnsurethatoverthecomingyearstheEUtakesaleadingroleindevelopingandapplying
environmentaltechnologies,
Mobiliseallstakeholdersinsupportoftheseobjectives,and
Implement a scheme that has the minimum level of bureaucracy while assuring high
technicalandqualitystandardsandengagingwithawiderangeofstakeholdersatnational
andEuropeanlevels.
TheseobjectivessupporttheoverallaimsofETAP.
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2.2.2.2. DESIGNOFANEUETVDESIGNOFANEUETVDESIGNOFANEUETVDESIGNOFANEUETVSYSTEMSYSTEMSYSTEMSYSTEM
ThedesignoftheEUETVSystemdescribedinthisBusinessPlanispredominantlybasedonthe
outcomesoftwokeystudiestheTritech-ETVPilotScheme,ofwhichthisPlanisanoutput,andcomprehensive analysis recently published by the IPTS. The EUETV System described in the
BusinessPlandrawsfromthekeylessonslearnedinthesetwostudies.
3.1.KeyLessonsLearnedfromTritech-ETV
ThereissignificantinterestfromtechnologydevelopersandpurchasersinETVschemesbased
onagenerallackoftrustinnewtechnologies.
Itisimperativetounderstandthewiderenvironmental,technicalandcommercialaspectsofa
vendorandtheirtechnologyi.e.totakeaholisticview.
TheexpertiseoftheVerificationBodiesandacompetentExpertGroupiscriticalduringtheclaim
definitionprocess.Inadditiontothedefinitionoftheclaims,theremaybeaneedforexpertsto
commentonthetestplanandverificationreport,especiallyifthereislittleornoexperienceofthe
verificationofthesimilartechnologies.Alistofqualifiedexpertsofdifferenttechnologyareas
shouldbeproduced.
Toensuretheavailabilityofcompetentexperts,asystemforcompensationoftheirexpenses
shouldbedeveloped.
ItisimportantforalloftheteststohavebeencompletedpriortoenteringtheETVscheme.
Availabilityofsuitableprotocolsshouldconsiderablyshortenthetimeneededtocompletethe
verificationprocess.However,therangeoftechnologiesiswideandthismaytakealongtimeto
achieve.
IftheETVsystemistosupportadecision,technologiesthatservethesamefunctionshouldbe
clusteredintooneprotocol,notjusttechnologiesusingthesametechnicalprinciples.
TheETVsystemmustbeefficientandflexibletominimisethetimerequiredbythevendorto
provideinputintotheprocess.
Itisessentialtocommunicatethebenefitsofthevendorbeinginvolvedinverification.
Atleastsmallenterpriseswillneedanationalcontactpoint.Someofthemmayhavelanguagebarriers.Itisalsoimportantthatthereisanopportunityforpersonalcontactsandtheinformation
abouttheverificationcomesfromanationalorganization.Ifpossible,thereshouldbeaccepted
testinglaboratoriesinallthecountriesinvolvedinthescheme.
ThebenefitsofEU-ETVasaEuropean-wideverificationschemeshouldbeemphasized.
Inadditionto(orbefore)verification,thesmallertechnologyvendorswouldneedsupportin
findingopportunitiesfortechnologypilotingand/ordemonstration.
ConsiderationshouldbegiventoprovidingadditionalsupporttoSMEs.
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ToenableaquantifiableassessmentoftheeconomicimpactanETVschemethereisa
requirementtoestablishabaselineofinformationontheSMEswithinaregion.Thisinformation
mustbeheldcentrallyandperiodicallyreviewedtounderstandtheeconomicgrowth.
ImpactassessmentshouldbebuiltintotheEU-ETVscheme.
Fromtheperspectiveofvendors:
NationalContactPoint(NCP)smallvendorswillbenefitfromthenetwork-typeapproachthata
NCPcanoffer.ItwillalsoallowthevendortointeractmoredirectlywiththeEUETVgoverning
body.
Offeringincentivestothevendorsthiscouldbeachievedthroughpartfundingfortherequired
verificationtrials.VendorsmustbemadeawareandunderstandthebenefitsofanETVscheme.
Routetoverificationthereshouldbeaclearroutetoverification,mappedoutfromthestart
alongwiththeperceivedcostsinvolvedwiththeprocess.Thetime-scalesinvolvedintheprocess
shouldnotbeprohibitiveandshouldbewelldocumented.
Administrativeburdenvendorswillbetypicallyshortonstaffresourcesandthereforethe
administrativetasksinvolvedshouldbeminimised.
MarketingverificationcertificationandEUETVlogowillincreaseexposureforthevendorand
theschemeingeneral.
InternationalHarmonisationensureexposuretoawiderangeofmarkets.
Fromtheperspectiveofendusers:
Targetedmarketingmakingthebuyersawareofthebenefitsinvolvedinpurchasingaverified
technology.
EconomicimpactassessmentthebuyerandvendorwillbenefitfromunderstandinghowanEU
ETVhasimpactongrowth.
Qualitytheindependentverificationpartyandthetestfacilityshouldbeofhighqualitytoensure
anEUETVschemedemandsrespect.
Commercialcredentialstheidentificationofwiderimpactsthetechnologyhassuchas
commercialandenvironmentalimpactswillhelptheenduserwiththeprocurementbusiness
case.
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OtherkeypointsarisingfromTritech-ETVwithregardto thedesignofasuccessfulEnvironmental
TechnologyVerificationSystemareasfollows:
The governments influential leadership is necessary at the beginning of environmentaltechnology development. Small environmental businesses lack abilities to develop new
technologiesandordinaryenterprisesarenotactiveininvestinginenvironmentaltechnology
development. Therefore, until the environment market grows to a certain size, the
governmentsinterventionisneededtosustainthetechnologicaldevelopment.
Public support is important. Environmental technologies are not for manufacturing, they
cannotproducevisibleresultsimmediatelyandoftenquantifiedresultsarenotmeaningful.
Withoutthesupportofcivilsociety,itmaybedifficulttosecuregovernmentfunding.
Environmentaltechnologydevelopmentprojectsmustreflectnationaldemandsaswell as
internationaldemandsforspecialenvironmentaltechnologiesandforecastfuturedemands.
Precise estimation of demandsmakes the efficient distribution and execution of budgets
possible,contributestotheenvironmentalsolutions,andsecureseasilyrelevantbudgetsin
thefuture.Togetanaccurateforecast for technologydemand,specialists inbroadareas
mustparticipateandsharerelevantinformation.
The environment market should be activated. Without this, technologies are useless.
Therefore it is important to create market environment for developed environmental
technologiestobeutilizedactively.Thisrequiresgovernmentalinterventionandsupport.Forexample,thesizeoftheenvironmentmarketcanbeextendedby tighteningenvironmental
regulations, providing loans and tax exemption for the installation of treatment facilities,
expandingthegovernmentspurchaseofenvironmentallyfriendlygoods.
Policies for promoting environmental corporations are also important. Environmental
businesses play a key role in forecasting demands for environmental technologies,
developingthemandsellingthem.However,mostearly-stageenvironmentalcompaniesare
smallinsizeandtheyhavedifficultiesgettingintothemarket.Thereforeitisdesirableforthe
governmenttopromotevariouspoliciesinordertoenhanceenvironmentalcompaniesown
managementandresearchcapacities.
3.2.ConclusionsfromtheInstituteforProspectiveTechnologicalStudies(IPTS)
The Institute for Prospective Technological Studies (IPTS) recently published a report on
EnvironmentalTechnologyVerificationSystems 2.Thestudyundertookananalysisofinternational
bestpracticeandaEuropean-widesurveyamongststakeholders.Withregardtotheexisting,non-
European,programmes,thesebelongtoeithertheUSA(SouthKorea,Japan)orCanadian(China,
2SpyridonMerkourakis,IgnacioCalleja,LuisDelgado(JRC/IPTS),ArletteOafrain,SophieLaurent(JITEX),
EnvironmentalTechnologiesVerificationSystems,JRC38236(2007).
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Bangladesh,NewJersey)models.IPTScomparedtheoperationofthesetwomodels,illustratedin
Figures1and2,andthekeyconclusionsareasshowninTable1.
Figure1Figure1Figure1Figure1:SimplifiedviewoftheUSETVsystem:SimplifiedviewoftheUSETVsystem:SimplifiedviewoftheUSETVsystem:SimplifiedviewoftheUSETVsystem
Figure2Figure2Figure2Figure2:SimplifiedviewoftheETVCanadasystem:SimplifiedviewoftheETVCanadasystem:SimplifiedviewoftheETVCanadasystem:SimplifiedviewoftheETVCanadasystem
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TabTabTabTable1le1le1le1::::KeyconclusionsfromIPTSregardingtheUSAandCanadianmodelsKeyconclusionsfromIPTSregardingtheUSAandCanadianmodelsKeyconclusionsfromIPTSregardingtheUSAandCanadianmodelsKeyconclusionsfromIPTSregardingtheUSAandCanadianmodels
USAModelUSAModelUSAModelUSAModel CanadianModelCanadianModelCanadianModelCanadianModel
FocusFocusFocusFocus Marketsectorfocusoperatedthrough
specializedVerificationOrganisations
(VOs)
Technologyfocused.
VerificationVerificationVerificationVerification
ProcessProcessProcessProcess
Verificationoccurs"inside"thesystem-
VOsdecide,withstakeholderandvendor
feedback,thetypeofteststhatwillbe
neededandtheoperationalconditionsthat
willbeapplied.
Thetechnologyistested,oftentogether
withothersimilartechnologiesunderthe
sameconditions.Theresultingperformance
dataaremadepublicallyavailable,alongwiththetestprotocolsandtestplans.There
isnoguaranteethatthetechnologywill
performtothesamelevelunderthesame,
ordifferent,conditionsofuse.
Thesystemonlyverifiespre-existingdata,The
systemcangiveadvicetovendorsbutitdoesnot
definethetypeofteststobeexecuted.Thedata
wouldhavebeenproducedbyanindependent
laboratorypriortosubmissionforverification,
Thesystemcanverifythatthetestsweredone
accordingtosoundscientificandengineering
practice.
Thesystemismorevendor-driventhantheUSAmodelastheverificationisadaptedtothe
vendor'sclaims.
Thetechnologydatasubmittedbythevendorare
examinedbythesystemandthesystemverifies
thatthevendorsclaimsaresupportedbythose
data.Thereisnoguaranteethatthetechnology
willperformtothesamelevelatthesameor
differentconditions.
AccesstoAccesstoAccesstoAccessto
ResultsResultsResultsResults
Allverificationrelateddatatestplans,test
protocolsandverificationresultsare
publiclyaccessible.Thesystemistherefore
transparentandenablescomparisonstobe
madebetweencompetingtechnologies.
Onlytheclaimsarepublished;thetestprotocols
andthedatasuppliedbythevendorarenot
madepublicallyaccessible.
CostsandCostsandCostsandCostsand
TimescalesTimescalesTimescalesTimescales
Longerprocessandmoreexpensivethan
theCanadianmodelastestsareperformed
withinthesystem.However,thefeeis
subsidisedbyagovernmentalcontribution
(whichvariesfromcasetocase).
Astherearenotestsperformed,thewhole
procedureisfaster,andthefeethatthevendor
paysislower,thanintheUSmodel.However,
thevendorwouldhavealreadypaidforthetests
(orwillpayforadditionaltests)thatarenot
includedinthecostsoftheverificationprocedure.
AdditionalAdditionalAdditionalAdditional TheUSmodelcreatesnewknowledgeand
performanceinformationforthemarket.
Thereisextensivestakeholderinvolvement
and,whilethisistimeconsuming,itdoes
enhancethecredibilityofthesystem.
TheCanadianmodeldoesnotproducenew
informationitsimplyusespreviously
establisheddatainordertocorroborateclaims.
Stakeholderinputisminimalthekeyinteraction
isbetweenthevendorandtheETVsystem.
KeyconclusionsfromthemarketsurveyconductedbytheIPTSareassummarisedinTable2.
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Table2Table2Table2Table2::::KeyconclusionsfromtheIPTSmarketsurveyKeyconclusionsfromtheIPTSmarketsurveyKeyconclusionsfromtheIPTSmarketsurveyKeyconclusionsfromtheIPTSmarketsurvey
FeedbackfromrespondentsandKeyLessonsFeedbackfromrespondentsandKeyLessonsFeedbackfromrespondentsandKeyLessonsFeedbackfromrespondentsandKeyLessons
UsefulnessofETVinUsefulnessofETVinUsefulnessofETVinUsefulnessofETVin
relationtoexistingrelationtoexistingrelationtoexistingrelationtoexisting
systemssystemssystemssystems----
harmonizationharmonizationharmonizationharmonization
AnEU-ETVsystemwouldbeusefulprovided:
1. Bureaucracyiskepttoaminimum,and
2. Ahightechnicallevelisguaranteed.
AEuropean-widesystemwouldremovetheneedfortechnologyapprovalsineach
country.However,themeaningofverificationandoftheETVlogowouldneedtobe
clearlycommunicatedtoavoidconfusionwithcurrentnationalandlocaltechnology
approvalsystemsaroundEurope.
Cooperationandcollaborationwiththeexistingverificationprogramsintheworld
(USA,Canada)wouldbevaluable.
FactorsofsuccessFactorsofsuccessFactorsofsuccessFactorsofsuccess
requirementsofETVrequirementsofETVrequirementsofETVrequirementsofETV
Theschemeshouldbesimple,fastandaffordableforthevendors.
Theschemeshouldbewidelyrecognised,bothinEuropeandworldwide,asareliable
tooltoassessthequalityandperformanceofanenvironmentaltechnologyandshould
bebasedonaprocedureoftechnicalexcellence.
TheEU-ETVschemeshouldbeapublic/privateinitiativethepublicparthelping
achieverecognitionandtheprivatepartprovidingthefundsandassuringthatthe
systemisclosetothemarket.Thesystemshouldstartoffasapublicinitiativein
whichtheEUandMemberStatestakepart.
PrioritizationofPrioritizationofPrioritizationofPrioritizationof
technologiesandthetechnologiesandthetechnologiesandthetechnologiesandthe
questionofquestionofquestionofquestionof
prototypesprototypesprototypesprototypes
Theprogramshouldbeopentoalltechnologies,butprioritycouldbegiventosome
environmentaltechnologiesonthebasisthat:
Thetechnologieshaveenvironmentalimpact,
Thereisaclearneedinthemarket,
Thetechnologiesarenewandinnovative,and
Thetechnologiesarenotcoveredbycurrentstandardsofregulations.
However,heterogeneityinEuropeneedsbetakenintoaccountindefiningpriority
technologyareas.
Inadditiontocommercially-readyproducts,prototypescouldbeaccepted.Thiscould
helpsmallcompaniesthatcannotperformtheirtestsin-housetolearnabouttheir
productthroughtestingdonebyathirdpartyusingwell-recognisedETVtest
protocols.However,itisnotedthattestingprototypesisoutofthescopeofexisting
ETVschemessinceprototypesareboundtoevolveandnullifyperformancedata
gatheredatearlierstagesofdevelopment.Verificationofaprototypealsoshouldnot
leadtoawardinganETVlogo,andtheverificationreportshouldnotbepublished.
SMEsversuslargeSMEsversuslargeSMEsversuslargeSMEsversuslarge
companiescompaniescompaniescompanies
Theprogramshouldbeopentoallcompanies,SMEsorlargegroups,whether
Europeanornot.However,specifictreatmentcouldbeappliedtoSMEs(through
financialsupportandguidance)andtonon-Europeanvendors(whoshouldnot
receivepublicfunds).
CredibilityCredibilityCredibilityCredibilityMarketMarketMarketMarket
recognitionrecognitionrecognitionrecognition
RecognitionoftheETVschemefromthemarketisacrucialissue.ThebestETV
Teamisgenerallyconsideredtobeapublicbody.AprivatebodyplayingtheroleoftheETVTeamcouldbecredibleprovideditistotallyindependent.
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TestinglaboratoriesmustbeaccreditedbytheEU-ETVsystem,anessentialcriteria
beingtheirindependence.Foreachtechnologygroup,thereshouldbemorethanone
accreditedlaboratorytoavoidmonopolyanddelayinproducingtestdata.
FortheVerificationOrganisation(VO),tobecredible,itshouldnotbedirectlyinvolved
intheperformancetestingitself,anditshouldhaveverygoodexpertiseinthe
technologyareaitisfocusedon.Practicalconsiderations,ortheavailabilityofthe
adequateexpertise,mayjustifythemergeroftheVOandtheTestingLaboratoryin
oneentity,dulyauditedbytheETVsupervisingorganisation.
Besidesthevendors,itisimportantthatthemostrelevantstakeholdersofeach
technologycategorytakepartinthesystem:MemberStates,buyers,users,
academia,tradeassociations,etc.
TestProtocolsTestProtocolsTestProtocolsTestProtocols Thetestprotocolsshouldbeestablishedbyindependentexperts,usingexistingprotocolsasastartingpointwhenpossible.Theirdevelopmentshouldbepaidforby
thepublicpartofthesystem(i.e.notbythevendor).However,thiscouldbeexpensive
forinnovativetechnologies,whicharetheonesthatwouldbeexpectedtobenefitthe
mostfromEU-ETV.
CostsCostsCostsCosts CostisamajorissueforvendorswhomaygothroughtheETVprogram,
Asuggestedpricerangebetween5,000(notincludingtestsETV
Canadian-typeverification)and25-30,000(includingtestsUSETV-type
verification)wasoftencited.Butitisafunctionofwhetheritismandatorytogo
throughETVornot.
Alargesourceofthecostofverificationforvendorsislinkedtothetesting
requirements.Generally,vendorsfeelthattheverificationshouldbesubsidized,
particularlyforveryinnovativetechnologiessincetheycontributetotheimprovement
oftheenvironment.
Akeyissueishowtomotivatevendorstogothroughtheverificationprocess,without
itsbecomingmandatory.TheETVsroleinthemarkethastobemadeclear.
ThechoiceoftheThechoiceoftheThechoiceoftheThechoiceofthe
testinglaboratorytestinglaboratorytestinglaboratorytestinglaboratory
Twoopposingviewsweregivenregardingchoiceofthetestinglaboratorieseither
thevendorshouldorthevendorshouldnotbeabletopickthelaboratorytodothe
testing.Behindthischoiceisthequestionofhowthetestinglaboratoriesareaccreditedandmonitored.Thereforeitseemsimportanttoaccredittesting
laboratoriesandtoregularlyauditthem.AstrongVO(suchastheUSverification
centrethatsometimesperformsmostofthetests)isalsoapossibility.
SubsidiesSubsidiesSubsidiesSubsidiesfinancialfinancialfinancialfinancial
supportsupportsupportsupport
Financialhelpwillbeastrongincentiveforvendorstogothroughtheverification
process.SMEsareakeytargetofETVastheyareofteninnovativebutwouldfindit
difficulttopayforverification.However,whetherSMEsshouldhavespecialpublic
supporttogothroughETVisquestionable.
However,sizeofcompanyisnottheonlyfactorthatshouldbeconsideredasfaras
potentialsubsidiesareconcerned,withotherfactorsbeingimportantsuchas:
Theenvironmentalimpactofthetechnology,
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Theinnovativeaspect,and
Thesustainabledevelopmentqualityofatechnology.
MandatoryversusMandatoryversusMandatoryversusMandatoryversus
voluntaryschemesvoluntaryschemesvoluntaryschemesvoluntaryschemes
AnyactionbyMemberStatesthatprovidesanadvantagetoverifiedenvironmental
technologieswouldencouragethemarketandineffectmaketheschemeresemblea
mandatoryone.However,somevendorsstressedthatanEU-ETVshouldnotbe
compulsoryand,ifitwere,thenitshouldbefullysubsidized.
FinanciersFinanciersFinanciersFinanciers Allstakeholdersshouldcontributefinancially:notonlytheMember
States,theECandthevendor,butalsotrade/industrialassociations,users,
regulators,environmentalgroups,publicauthoritiesetc.Thecontributionof
stakeholderscouldtakedifferentformsfromfinancingtheverificationtoprovidingthe
facilities,equipmentandstaffforthetests.
TheIPTSproposedamodelfortheimplementationofanEU-ETVsystem,describingapotential
organisationalstructureforanEU-ETVsystem,basedontheprinciplethatisshouldpredominantly
relyonexistingstructures.ThemodelforeseesacentralEU-ETVteamtolaythefoundationsofthe
system(scope,objectives,strategiesandprotocols).AlthoughtheIPTSdonot judgewhetherthis
entityshouldbeprivateorpublic,themarketsurveyindicatedthatthecredibilityofthesystemwould
beenhancedifthisentitywereapublicbody.
ThevendorwouldinteractattheleveloftheThematicVerificationOrganisation(VO).ANetworkof
National ETV contact points could beestablished toact asanentry point for vendors, reducing
geographical,languageoradministrativebarriersbyexplainingtovendorstheETVconceptandits
benefits.ETVcontactpointscouldbeestablishedinallMemberStates.
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Figure3Figure3Figure3Figure3::::ModelproposedbytheIPTSModelproposedbytheIPTSModelproposedbytheIPTSModelproposedbytheIPTS
EU-ETVTeam
Coordinateandsupervisetheverificationprocess,
Beresponsibleforcompliancewiththeobjectivesandqualitymanagement
procedures, Designate thematic verification organisations (VOs), depending on the
prioritytechnologyareasaddressedbytheprogram.
AudittheVOsandverifythattheirproceduresandoutcomescomplywith
theprogramrequirements.
Communicateprogramactivities,progress,outputsandrecommendations.
Awardcertificatesandlogostosuccessfulvendors.
Thematic
Verification
Organisation(VO)
Developtestplansandprotocols.
Identify technology vendors in their thematic areas that are potentially
interestedintheprogram.
Reviewvendorapplications
Carry out tests, appointother TestingLaboratories(TLs) toperform the
tests,ordesignateVerificationCentres(VCs)toverifythevendorclaims.
VerifytheaccreditationofanyTLsorVCsutilised.
Reviewandapprovetheverificationreports.
Collaboratewith thematicstakeholdersgroups,for scientific or technical
support, for guidanceonmarket needs or selection of qualified testinglaboratories,orforpromotionorreviewpurposes.
TestingLaboratory
(TL)
Help in developing the specific
protocols and test plans appropriate
totheirscope.
Execute the tests, respecting the
protocols and quality management
procedures.
Writetheverificationreport.
VerificationCentre
(VC)
Iftechnologytesting isrequired
andiftheThematicVOdoesnot
havethenecessaryexpertise
If claim verification is required
andiftheThematicVOdoesnot
havethenecessaryexpertise
Examinethevendordataandverifyif
they support the accompanying
claims, respecting theprotocols and
qualitymanagementprocedures.
Propose to the vendor that testsbe
repeatedif the qualityofthedata is
notsufficient.
Writetheverificationreport.
Thematic
Stakeholder
Group(SG)
Help with the development and review of the verification tools, test
protocols,testplansandqualitymanagementplans.
HelptheThematicVOwithtechnologyprioritizationandTC/VCselection.
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3.3.3.3. ORGANISATIONANDMANORGANISATIONANDMANORGANISATIONANDMANORGANISATIONANDMANAGEMENTAGEMENTAGEMENTAGEMENT
TheorganisationoftheEU-ETVdescribedinthisBusinessPlanhasbeendevelopedalongthelines
oftheconclusionsfromthestudiessummarisedinSection3.TheverificationstructureisillustratedinFigure4.
Figure4Figure4Figure4Figure4::::VerificationstructurefortheEUVerificationstructurefortheEUVerificationstructurefortheEUVerificationstructurefortheEU----ETVETVETVETV
The basic features of the EU- ETV would be fixed in EU legislation establishing the scheme. The
main documents defining the procedures followed by the EU-ETV, in particular the list of technology
areas covered by ETV, the General Protocol and Quality Management System, and specific
protocols where appropriate, should be adopted by the Commission using usual Committee
procedures where Member States experts are involved.
Nominate members,
give mandate
Provide
advice
Peer-review,drafts joints
rocedures
Nominates
VBs
Accredits and
monitors VBs
European
Commission
Central Verification
Organisation
(CVO)
Verification BodyVerification BodyVerification Bodies
(VBs)
Verification Panels
Member States
Technical Groups
Advisory Forum: Technology purchasers and
users, stakeholders
Applies
Test Centres
Accredits
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Technical standards (ISO, IEC, CEN, Cenelec) will be used extensively where available, in
particular for testing methods. Standards development will be encouraged to accompany the
development of ETV and facilitate its wider recognition, including with non-EU programmes.
The role of each of the bodies identified in Figure 4 will be as follows:
CentralVerificationOrganisation(CVO)
TheCentralVerificationOrganisation(CVO)hastheultimatecontroloftheEUETVschemeforthe
whole ofEurope and corresponds broadly to the EU-ETVTeam identified in the IPTSmodel in
Figure3.WhiletheVerificationBody(VB)willgatherallthenecessaryinformationandcompletethe
verificationprocess,thisverificationreportwillbesentthroughtotheCVOforafinalreviewandthe
verificationcertificate/stampwillthenbeissuedwhereappropriate.TheCVOwilltherefore:
CoordinateandsupervisetheEU-ETVscheme,
BeresponsibletotheEuropeanCommissionforcompliancewiththeobjectivesandquality
managementproceduresoftheEU-ETVscheme,
DesignateVBs,dependingontheprioritytechnologyareasaddressedbytheprogramme.
AudittheVBsandverifythattheirprocedurescomplywiththeprogramrequirements.
Communicateprogramactivities,progress,outputsandrecommendations.
Awardcertificatesandlogostosuccessfulvendors.
TheCVOwill alsohaverole incooperatingandcollaboratingwith other verificationprogrammes
aroundtheworld.
VerificationBody(VB)
It isenvisaged that severalVerification Bodieswillbeset uptocontrol theETV scheme across
individualEuropeannationsandacrosssectors(thematicfocus).TheVBswillliaisebetweenthe
technology vendor and the CVO during the verification process (the vendor will not havedirect
communicationwiththeCVO).TheVBwillberesponsibleforidentifyingandallocatingappropriate
testcentresalongwith theverificationpanelofexpertsforindividual technologies.All thevendor
details and commercially sensitive information made available to the VB will remain wholly
confidential andwill not be available in the public domain. The VBs correspond broadly to the
ThematicVerificationOrganisationsidentifiedintheIPTSmodelinFigure3.
VerificationBodies would bedesignated byMemberStates for a specific technology area,after
accreditationbytheCVO toensure that theVBsmeet the requirementsofETV, andmonitoring
continuously their qualifications. It should be stressed that there would not be necessarily one
VerificationBodyperMemberState:theaimisrathertohaveasmallnumberofVBs,forexample2
or3foreachofthetechnologyareasaddressed,competentforthewholeEuropeanUnion.
VerificationBodieswilloperateVerificationPanels.Theroleoftheverificationpanelsistovalidate
thevendorclaims.Theverificationpanelwillbemadeupof (aminimumofthree)expertsselectedfrom apredeterminedpool,each havinggone through a robust screening process.The experts
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selectedwillhaveparticularexpertiserelatingtothetechnologyunderverification.Withinthepanel
therewillbeexpertsfromindustry(publicsectorandprivatesector)andalsoacademic/technical
experts. The role of thepanel is to assess theenvironmental claims made by the vendor. The
vendormayhaveincludedindependenttestingofthetechnologytosupporttheclaimsmade.Theverificationpanelmaydeemthatthetestinginformationisnotsufficientlyrobustorhasnotbeen
undertakenbyanETV-approvedtestcentreandmaythereforerequestfurthertestingtoensurethat
theclaimscanbeverified.
TheVerificationBodieswilltherefore:
Developtestplansandprotocols.
Identifyvendorsintheirthematicareasthatarepotentiallyinterestedintheprogram.
Reviewvendorapplications
OperateVerificationPanelstoverifythevendorclaims.
VerifytheaccreditationofanyTestCentresutilisedbyvendors.
Reviewandapprovetheverificationreports.
Collaborate with Technical Groups for scientific and technical support, for guidance on
marketneedsandforpromotionorreviewpurposes.
TechnicalGroups
Inorderto harmonise theprocedures followedbyVBs competent for the sametechnologyarea,
TechnicalGroups would be set up by the Commission with Member State experts, in order to
organise thepeer-review ofVBsandpreparetechnicalguidanceorprotocolswhereappropriate.TheTechnicalGroupscorrespondbroadlywiththeThematicStakeholderGroupsidentifiedinthe
IPTS model in Figure 3. An Advisory Forum could give advice to the Commission and to the
Technical groups, in particular from a customer's and stakeholder's perspective. The Technical
Groupswilltherefore:
HelptheVBswiththedevelopmentandreviewoftheverificationtools,testprotocols,test
plansandqualitymanagementplans.
HelptheVBwithtechnologyprioritizationandTestCentreaccreditation.
TestCentres
These must be both accredited (by the VBs) and independent. The technology vendor should
identifyETVapprovedtestcentresattheearlystagesoftheirproductsdevelopmentasthiswill
minimisecostandavoidduplicationofanytestingdowntheline.TheVBcanhelpthevendorselect
themostappropriatetestcentrefortheirtechnology.
NationalContactPoint(NCP)
NCPswill provide the vendor will an initial point ofcontact toobtain informationabout the ETV
scheme,thestructure,andtheverificationprocessthatisundertaken.TheNCPisanontechnical
contactthatwillprovidepointersandanadditionalinterfacebetweenthevendorandtheappropriateVB.
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AnoverviewoftheoperationofthisstructureisshowninFigure5.
Figure5Figure5Figure5Figure5:Anoverviewoftheverification:Anoverviewoftheverification:Anoverviewoftheverification:Anoverviewoftheverificationprocessprocessprocessprocess
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TheproposedsystemincorporatesthekeyconclusionsandlessonslearnedfromtheIPTSstudy
andtheTritech-ETVpilot:
TheEU-ETVincorporatesacentralbody,theCVO,tooperatetheschemeonbehalfoftheEuropeanCommission, similar to the ETV Teams in the US andCanadianmodels. It is
proposedthattheCVObeapubliclyfundedbodydedicatedtooperatingtheschemeinline
withtheconclusionsoftheIPTSmarketstudy.Apublicbodyinthisrolewouldenhancethe
schemescredibilityrelativetoaprivatesectorbody.
TheEU-ETVwillincorporateVerificationBodiesthatarethematicallyfocused.TheseVBs
couldbeprivatesectororganisationsandwouldrequirepartpublicandpartprivatefinancing
public financingfor thegeneraloperationandoverheadsassociatedwiththeschemeand
privatefinancingintheformofacontributionbyvendorstothecostsofverificationandin
operatingtheVerificationPanels.
In common with the Canadian ETV model (and contrary to the US ETV model), the
verificationprocessintheEU-ETVschemewouldnotinvolvetesting.TheroleoftheVBswill
beinverifyingthedatathatarepresentedtotheVBbythevendor.However,theVBswill
havearoleinaccreditingTestingCentresandensuringthattheycomplywithqualityand
technicalstandardsmandatedbytheCVO.
TheEU-ETVschemewillincorporateahighdegreeofstakeholderinvolvementthroughthe
TechnicalGroupsandAdvisoryFora.Inthisregard,theschemedrawsfromakeystrength
oftheUSETCmodelrelativetotheCanadianmodelandalsoaccordswiththeThematic
StakeholderGroupsintheIPTSmodel.
It isproposedthat theEU-ETVschemeacceptsonly commercially-readytechnologiesfor
verification,ratherthanprototypes.AlthoughtheIPTSsurveyidentifiedsomeadvantagesin
allowingprototypestobeverified,itisconsideredthatprototypeverificationwouldgenerally
bemeaninglessasprototypesevolveinacommercialproduct.
InasimilarfashiontotheIPTSmodel,itisenvisagedthateachMemberStatewouldhave
National Contact Points to act as an entry point for vendors, reducing geographical,
language or administrative barriers by explaining to vendors the ETV concept and its
benefits.
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4.4.4.4. MARKETANALYSISMARKETANALYSISMARKETANALYSISMARKETANALYSIS
4.1.TheEnvironmentalTechnologiesMarket
A2002ECreportonEnvironmentalTechnologyforSustainableDevelopment3tookasthedefinition
of eco-industries as all activities whichproduce goods and services tomeasure,prevent, limit,
minimiseorcorrect environmental damage towater, air and soil,aswellasproblemsrelated to
waste,noiseandecosystems.Basedonthisdefinition,threecategoriesofactivitiesweredefined:
1. Pollution management of both a preventive or remediative nature (such as reducing
emissions,reducingenvironmentalriskorclearingupenvironmentaldamage),
2. Cleaner (integrated) technologies and products - activities that continuously improve,
reduceoreliminatetheenvironmentalimpactofgeneraltechnologies,and
3. Resourcemanagement(suchasrenewableenergyandwatersupply).
In1999,theoverallturnoveroftheEU-15eco-industrysectorwasestimatedat183billion(2.3%of
EUGDP),employingsome1.6millionpeople.TheturnoveroftheEU-15eco-industriesrelatingto
pollutionmanagement,cleanertechnologiesandproductswas127billion(equivalentto1.6%of
GDP), employing around 1 million people. From 1994 to 1999, turnover for the pollution
managementandcleanertechnologiesandproductssectorsinEU-15grewbyanaverageof5%
perannuminrealterms(comparedwithanaveragegrowthofaround2.5%inGDP).Employmentin
thissectorgrewfasterthanturnover,atarateofbetween6and7%perannum4.
Thesamereportnotedestimatesofthesizeoftheglobalmarketforenvironmentaltechnologiesof
around550billion,withtheEUmakingupapproximatelyonethirdofthismarket.TheUSA,EU
andJapandominatedtheglobalenvironmentalmarketaccountingfor85%ofit.
A five-year update of these figures, from1999 to2004, hasalsobeen reported5. TotalEU eco-
industryturnoverin2004wasestimatedat227billion,frompollutionmanagementandresource
managementactivities.Pollutionmanagement consistsof nine eco-industrysectors thatmanage
materialstreamsfromprocessesmanagedbyhumans(thetechnosphere)tonature,typicallyusing
endofpipetechnology.Italsoincludescleanertechnologiesandproducts,whicharementionedin
thedefinitionsasequipment.Inorderofturnover:
SolidWasteManagement&Recycling(52.4billion),
WasteWaterTreatment(52.2billion),
3 European Commission, Environmental technology for sustainable development, COM(2002) 122 final
(2002)4 Ecotec Research and Consulting Ltd, Analysis of the EU Eco-industries, their employment and export
potential",(2002).5Eco-industry,itssize,employment,perspectivesandbarrierstogrowthinanenlargedEU,DGEnvironment,
September2006.
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AirPollutionControl(15.9billion),
GeneralPublicAdministration(11.5billion),
PrivateEnvironmentalManagement(5.8billion),
Remediation&CleanUpofSoil&Groundwater(5.2billion), Noise&VibrationControl(2billion),
EnvironmentalResearch&Development(0.11billion),and
EnvironmentalMonitoring&Instrumentation.
Resourcemanagementincludesfiveeco-industrysectorsthat takeamorepreventiveapproachto
managingmaterialstreamsfromnaturetothetechnosphere:
WaterSupply(45.7billion),
RecycledMaterials(24.3billion), RenewableEnergyProduction(6.1billion),
NatureProtection(5.7billion),and
Eco-construction.
Table 3:Table 3:Table 3:Table 3: Total Turnover, Pollution Management and Resource ManagementTotal Turnover, Pollution Management and Resource ManagementTotal Turnover, Pollution Management and Resource ManagementTotal Turnover, Pollution Management and Resource Management ExpenditurExpenditurExpenditurExpenditures byes byes byes by
Country,2004Country,2004Country,2004Country,2004
Totalemployment,directandindirect,ineco-industriesin2004wasestimatedtobe3.4million,2.35
millionfrompollutionmanagementactivitiesand1.04millionfromresourcemanagementactivities.Overall,eco-industryjobsaccountedfor1.7%ofEU-25employment.
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Total2004turnoversforthePollutionManagementandResourceManagementsectorsbyCountry,
arepresentedinTable3.
Morerecently, astudyconductedby InnovasfortheUKsDepartment forBusinessEnterprise&
RegulatoryReform(BERR)on theLowCarbonandEnvironmentalGoodsandServices(LCEGS)
industry present some interesting figures6. The report defines the LCEGS sector as including
solutions for problems such as air, noise, and marine pollution, land and water contamination,
environmental analysis, waste management and recycling and now, renewable energy and
emerginglowcarbonactivities.
The globalmarket value for the LCEGS industryfor2007/8was estimated tobearound 3,350
billion,significantlygreaterthanthefigureforenvironmentaltechnologies,estimatedintheEcotec
report for 1999. The global market is forecast to grow by 45% from 2007/8 to 2014/15, with apotentialglobalmarketvalueof4,860billion.TheinternationalbreakdownisshowninTable4.
Table4:InternationalbreakdownofmarketvalueoftheLCEGSTable4:InternationalbreakdownofmarketvalueoftheLCEGSTable4:InternationalbreakdownofmarketvalueoftheLCEGSTable4:InternationalbreakdownofmarketvalueoftheLCEGSindustryindustryindustryindustry
RegionRegionRegionRegion MarketvalueMarketvalueMarketvalueMarketvaluebnbnbnbn**** %globaltotal%globaltotal%globaltotal%globaltotal
AsiaandFarEast 1,263 37.7
Americas 1,008 30.1
Europe(incl.Non-EU) 912 27.2
Africa 126 3.8
Oceania 41 1.2 3,3503,3503,3503,350 100.00
*ConvertedfromUKPoundsSterlingatanexchangerateof1.1EurostothePound
AsiaandtheFarEasthave37.7%ofthevalueoftheglobalLCEGSmarket.Thisisfollowedbythe
AmericasandthenEurope.Together,thesethreeregionsaccountfor95%oftheglobaltotal.Africa
andOceaniaaccountforonly5%oftheglobaltotal.
ThereportfurtherbreaksdowntheglobalmarketvalueoftheEnvironmental,RenewableEnergy
andEmergingLowCarbonsectors,asshowninTable5.
Table5Table5Table5Table5:GlobalmarketvalueofLCEGSbysector:GlobalmarketvalueofLCEGSbysector:GlobalmarketvalueofLCEGSbysector:GlobalmarketvalueofLCEGSbysector
MarketvalueMarketvalueMarketvalueMarketvaluebnbnbnbn %globaltotal%globaltotal%globaltotal%globaltotal
Environmentalsector 723 21.6
RenewableEnergysector 1,034 30.9
EmergingLowCarbonsector 1,593 47.5
Total 3,350 100.00
6Innovas/BERR.LowCarbonandEnvironmentalGoodsandServices:anindustryanalysis.6March2009.
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The traditional Environmental sector accounts for 21.6% of the global market value. This is a
smallersharethaneitherofthenewerRenewableEnergyandEmergingLowCarbonsectors,with
30.9%and47.5%oftheglobalmarketvalue,respectively.ItisclearthattheRenewableEnergyand
EmergingLowCarbonsectorsarenolongeronthefringeofenvironmentalproductsandservices,butarebothlargerandfastergrowingthanthetraditionalEnvironmentalsector.
Intermsofindividualtechnologies,theseareshowninTable6.
Table6:BreakdownofmarketvalueoftheLCEGSTable6:BreakdownofmarketvalueoftheLCEGSTable6:BreakdownofmarketvalueoftheLCEGSTable6:BreakdownofmarketvalueoftheLCEGSindustryindustryindustryindustrybytechnologiesbytechnologiesbytechnologiesbytechnologies
MarketvalueMarketvalueMarketvalueMarketvaluebnbnbnbn %globaltotal%globaltotal%globaltotal%globaltotal
AlternativeFuels 620.3 18.51
BuildingTechnologies 429.5 12.82
Wind 386.6 11.54
AlternativeFuelsforVehicles 374.1 11.17
Geothermal 304.0 9.07
Water&WasteWaterTreatment 260.3 7.77
RecoveryandRecycling 205.3 6.13
Photovoltaic 156.2 4.66
WasteManagement 155.4 4.64
Biomass 154.2 4.60
EnergyManagement 80.4 2.40
AdditionalEnergySources 39.8 1.19
CarbonFinance 34.8 1.04
AirPollution 31.0 0.93
ContaminatedLand 29.5 0.88
EnvironmentalConsultancy 25.9 0.77
RenewableConsulting 16.7 0.50
CarbonCapture&Storage 14.6 0.44
Hydro 14.0 0.42
Noise&VibrationControl 6.9 0.21
EnvironmentalMonitoring 4.8 0.14
MarinePollutionControl 3.9 0.12
Wave&Tidal 2.2 0.06TOTALTOTALTOTALTOTAL 3,3503,3503,3503,350 100.00
The smallest subsector is Wave andTidalwith 0.06% of the global total, followed by Marine
PollutionControlwith0.12%.Overall,manufacturingactivitiesaccountfor32%oftheglobalmarket
value.
The report focusedon theUKmarket and found that the sizeoftheLCEGSsector intheUKis
105.6billion,with54,835activecompanies,ofwhich17,303areinvolvedinmanufacturing,and
881,000 jobs.Around91.5%of the companies inthesector areSMEs.TheUKturnoverfor the
LCEGSsectorrepresentsabout12.85%ofthatforEuropeasawhole.BasedontheassumptionthattheUKmarketstructureistypicalofthatforEurope,wecanestimatethatthenumberofactive
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companiesintheEuropeintheLCEGSindustryisaround427,000,ofwhich135,000areinvolved
inmanufacturing.
ThebreakdownoftheLCEGSindustryfiguresbyEUcountryisshowninTable7andillustratedinFigure6.About60%oftheindustryislocatedinGermany,UK,France,SpainandItaly.
Table7:BreakdownofmarketvalueoftheLCEGSindustrybyETable7:BreakdownofmarketvalueoftheLCEGSindustrybyETable7:BreakdownofmarketvalueoftheLCEGSindustrybyETable7:BreakdownofmarketvalueoftheLCEGSindustrybyEuropeancountryuropeancountryuropeancountryuropeancountry
Country Value bn % Cum %
Germany 140 15.4% 15.4%
United Kingdom 117 12.9% 28.3%
France 102 11.2% 39.5%
Spain 92 10.1% 49.5%
Italy 90 9.9% 59.4%
Netherlands 28 3.1% 62.5%Poland 26 2.9% 65.4%
Belgium 18 2.0% 67.4%
Sweden 15 1.6% 69.1%
Austria 15 1.6% 70.7%
Greece 13 1.4% 72.1%
Romania 11 1.2% 73.3%
Portugal 10 1.1% 74.4%
Czech Republic 10 1.1% 75.5%
Denmark 10 1.0% 76.5%
Finland 9 1.0% 77.5%
Hungary 9 1.0% 78.5%Ireland 7 0.8% 79.3%
Rest of Europe (Incl. Non-EU) 188 20.7% 100.0%
Totals 912 100%
Figure6:DistributionoftheLCEGSindustrybyEuropeancountryFigure6:DistributionoftheLCEGSindustrybyEuropeancountryFigure6:DistributionoftheLCEGSindustrybyEuropeancountryFigure6:DistributionoftheLCEGSindustrybyEuropeancountry
Germany
United Kingdom
France
Spain
Italy
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5.5.5.5. STRATEGYSTRATEGYSTRATEGYSTRATEGY
5.1.Scope
TheEU-ETVwouldaccepttechnologiesreadyforcommercialisation, ideallyintheearlystagesof
commercialisation,inbusiness-to-businessrelations (notconsumerproducts): industrial products,
equipmentsandprocesses.Technologiesatdesignordevelopmentstagewouldnotbeacceptedas
theirperformancemaynotberepresentativeofcommercialisedtechnologies.AsnotedinSection3,
testing prototypes is also outside of the scope of existing non-European ETV schemes since
prototypes are bound to evolve and nullify performance data gathered at earlier stages of
development.
The EU-ETV system would begin in a few technology areas and would enlarge its scope
progressively. As highlighted in Table 2, priority should be given to some environmental
technologiesonthebasisthat:
Thetechnologieshaveenvironmentalimpact,
Thereisaclearneedinthemarket,
Thetechnologiesarenewandinnovative,and
Thetechnologiesarenotcoveredbycurrentstandardsofregulations.
Onthisbasis,thefollowingareas(andexamples)willformtheinitialscopeoftheEU-ETV:
6. Monitoringtechniques
Airemissionssensors,analysersandmonitors,
Watermonitoringtechniques,includingtestkits,probes,analysers,
Soilsmonitoring,pollutiondetectionandmeasurement,samplingdevices.
7. Waterandsoilstreatmenttechnologies
Drinkingwatertechniques,suchasfiltrationordisinfection,
Wastewatertreatment,separationtechniques,nutrientreduction,disinfection,
Soilsremediationtechniques.
8. Renewablesourcesofenergyandenergyefficiency
Micro-turbines,Fuelcells,Biomassburnersandboilers,
CombinedHeatandPower,Heatpumps,coolingsystems,
Photovoltaicsystemsandequipments,solarwaterheaters,
Windenergyequipments,seaenergysystemsandequipments(tidal,wave).
9. AirpollutionabatementincludingGHG
Abatementofpollutionfromstationarysources,indoorairqualityproducts,
Technologiesrelatedtothecombustionoffossilfuels(mobilesourcesdevices), Technologiesrelatedtothecombustionofwaste,
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Technologies,equipmentsandsystemsforCarbonCaptureandStorage.
10.Cleantechnologiesincludingwasteandresourcerecycling
Buildingsmaterials,energyefficiencyinbuildings, Cleanerorlow-carbonindustrialprocesses,coatingequipments,
Environmentaltechnologiesinagriculture,
Separationorsortingtechniquesforsolidwaste(vehicles,plastics,metals),
Recyclingtechniquesforbatteriesandaccumulators,forchemicals.
The global and Europeanmarket values for these technologyareascan beestimated from the
figuresgiveninTable6,asshowninTable8.
Table8Table8Table8Table8:Estimatedmarketvalue:Estimatedmarketvalue:Estimatedmarketvalue:Estimatedmarketvaluesoftheprioritytechnologyareassoftheprioritytechnologyareassoftheprioritytechnologyareassoftheprioritytechnologyareas
GlobalmarketvalueGlobalmarketvalueGlobalmarketvalueGlobalmarketvaluebnbnbnbn EuropeEuropeEuropeEuropemarketmarketmarketmarketvaluevaluevaluevaluebn*bn*bn*bn*
Monitoringtechniques 4.8 1.31
Waterandsoilstreatmenttechnologies 289.8 78.83
Renewablesourcesofenergyandenergyefficiency 713.2 193.99
AirpollutionabatementincludingGHG 45.6 12.40
Cleantechnologiesincludingwasteandresourcerecycling 790.2 214.93
TotalTotalTotalTotal 1,843.61,843.61,843.61,843.6 501.46501.46501.46501.46
*Basedon27.2%oftheglobalmarket
Together, these technology areas represent some 55% of the LCEGS industry. Based on thecompany numbers estimated in Section 5, the number of companies in each of the priority
technologyareasinEuropewouldbeestimatedasshowninTable9.
Table9Table9Table9Table9:Estimatednumbersofcompaniesintheprioritytechnologyareas:Estimatednumbersofcompaniesintheprioritytechnologyareas:Estimatednumbersofcompaniesintheprioritytechnologyareas:Estimatednumbersofcompaniesintheprioritytechnologyareas
NocompaniesinEuropeNocompaniesinEuropeNocompaniesinEuropeNocompaniesinEurope NoNoNoNoofmanuofmanuofmanuofmanufacturingfacturingfacturingfacturing
companiesincompaniesincompaniesincompaniesin
EuropeEuropeEuropeEurope
Monitoringtechniques 612 193
Waterandsoilstreatmenttechnologies 36,822 11,619
Renewablesourcesofenergyandenergyefficiency 90,614 28,593AirpollutionabatementincludingGHG 5,793 1,828
Cleantechnologiesincludingwasteandresourcerecycling 100,396 31,680
TotalTotalTotalTotal 234,234,234,234,237237237237 77773,9133,9133,9133,913
Itisthereforeestimatedthatsome74,000companies,thosethatareinvolvedinthemanufactureof
LCEGStechnologiesintheprioritytechnologysectorsidentified,couldbetargetedbytheEU-ETV
scheme.Ofthese,some60%wouldbeexpectedtobelocatedinGermany,UK,France,Spainand
Italyandsome90%ofthemwouldbeexpectedtobeSMEs.
Basedonthesefigures,andthosepresentedinSection5,thebreakdownofnumbersofcompanies
byEUMemberStatesisshowninTables10and11.
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Table10:EstimatednumbersofcompaniesintheprioritytechnologyareasTable10:EstimatednumbersofcompaniesintheprioritytechnologyareasTable10:EstimatednumbersofcompaniesintheprioritytechnologyareasTable10:Estimatednumbersofcompaniesintheprioritytechnologyareas
Country No. CompaniesNo. Manuf.
Companies
Germany 36,059 11,378United Kingdom 30,163 9,518
France 26,257 8,285
Spain 23,541 7,428
Italy 23,174 7,312
Netherlands 7,312 2,307
Poland 6,775 2,138
Belgium 4,689 1,480
Sweden 3,841 1,212
Austria 3,742 1,181
Greece 3,332 1,052
Romania 2,725 860Portugal 2,679 845
Czech Republic 2,561 808
Denmark 2,442 771
Finland 2,326 734
Hungary 2,326 734
Ireland 1,868 590
Rest of Europe (Incl. Non-EU) 48,425 15,280
Totals 234,237 73,913
Priority Technology Areas
These figures illustrate the fact that a flexible approach needs to be taken with respect to thespecification, number and location of the Verification Bodies. In particular, the Monitoring
Techniques technology area appears to be rather small (and this should, perhaps be validated
further),andwouldwarrantonlyasingleVBcoveringthewholeoftheEU.Ontheotherhand,the
Clean Technologies area (includingwaste and resource recycling) is clearly a large theme that
wouldwarrantanumberofVBsbasedinthekeycountrieswithlargesectorsinthisarea.
Basedontheseanalyses,thefollowingsuggestionscanbemadewithregardtothenumbersand
locations of VBs. Where areas have multiple VBs, these could focus on sub-sectors of the
technologiesortakeacomprehensiveviewoftheirsectorsandbemoregeographicallyfocused.
No.ofVBs
Locations
Monitoringtechniques 1 Central location, perhaps
Belgium
Waterandsoilstreatmenttechnologies 2to3 Germany,UK,France
Renewablesourcesofenergy&energyefficiency 4to5 Germany, UK, France,
Spain,Italy
AirpollutionabatementincludingGHG 1 Central location, perhaps
Belgium
Cleantechnologiesincludingwaste&resourcerecycling 4to5 Germany, UK, France,Spain,Italy
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Table11:EstimatednumbersofcompaniesineachoftheprioritytechnologyareasTable11:EstimatednumbersofcompaniesineachoftheprioritytechnologyareasTable11:EstimatednumbersofcompaniesineachoftheprioritytechnologyareasTable11:Estimatednumbersofcompaniesineachoftheprioritytechnologyareas
Country Monitoring Water/SoilsTreat RenewableEnergy Air Pollution Clean Tech.
Germany 30 1,789 4,402 281 4,877
United Kingdom 25 1,496 3,682 235 4,079
France 22 1,302 3,205 205 3,551
Spain 19 1,168 2,874 184 3,184
Italy 19 1,150 2,829 181 3,134
Netherlands 6 363 893 57 989
Poland 6 336 827 53 916
Belgium 4 233 572 37 634
Sweden 3 191 469 30 519
Austria 3 186 457 29 506
Greece 3 165 407 26 451
Romania 2 135 333 21 368
Portugal 2 133 327 21 362
Czech Republic 2 127 313 20 346
Denmark 2 121 298 19 330
Finland 2 115 284 18 315
Hungary 2 115 284 18 315
Ireland 2 93 228 15 253
Rest of Europe (Incl. Non-EU) 40 2,402 5,911 378 6,549
Totals 193 11,619 28,593 1,828 31,680
Number of Manufacturing Companies in each Technology Area
5.2.Operation
Fromthepointofviewoftheapplicant,technologydeveloperorvendorpresentingatechnologyto
ETV, the main relationship will be with a Verification Body (VB) competent for the relevant
technologyarea(inhisoranotherMemberState).NationalContactPoints(NCPs),establishedby
Member States,may facilitate the first contactsand advise applicants,especially SMEs, on the
appropriateness and best use of ETV for their specific project. TestCentres will be involved if
additionaltestsarerequiredtoverifytheclaim.
Fromtheperspectiveoftheapplicant,thegeneralorganisationof theschemecanberepresented
asinFigure7.
Twoimportantaspectsshouldbenoted:
TheETVprocesswillbebasedonvendorsclaims,notpre-definedcriteria,buttheclaims
willbereviewedtoensurethattheycanbeverifiedbyquantitativemethods,thattheyrelate
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to themain environmental impacts in a life-cycle approach and that they are useful for
technologyusersandpurchasers(enablingcomparisons),and
ThetestingphasewillnotbeincludedintheEU-ETVsystem(similarlytotheCanadianETVmodel); as such, the applicant would provide reliable, independent test results in the
applicationphase;iffurthertestsareneeded,theapplicantwillbefreetochoosetheTest
Centre provided that quality and independence of tests are ensured (i.e. it has been
accreditedbytheVB).
FigureFigureFigureFigure7777:Anoverviewofthe:Anoverviewofthe:Anoverviewofthe:Anoverviewoftheorganisationoftheschemefromtheperspectiveoftheapplicorganisationoftheschemefromtheperspectiveoftheapplicorganisationoftheschemefromtheperspectiveoftheapplicorganisationoftheschemefromtheperspectiveoftheapplicantantantant
ThegeneralprocedureenvisagedfortheEU-ETVsystemcanberepresentedinFigure8.
ThefinalresultofverificationwouldbeaVerificationStatementsummarisingthetechnologyand
performanceclaim that has been verified, the conditionsunderwhich the claim isvalidand theprocedures followed, and all information necessary to understand the Statement. Thiswould be
usedinbusiness-to-businessrelationsandwouldberecognisedinallEUMemberStatesandby
publicadministrations.In future,mutualrecognitionofETVprogrammescouldmake itpossible to
haveETVStatementsrecognisedglobally.
It isproposed that the EU-ETV scheme bea voluntary scheme,at least at the outset. Thiswill
enabletheschemetosettledowntoalargedegreeandfortheCVOandVBstobetterunderstand
theircapacityconstraintsinrunningthescheme.Itisalsoconsideredthat,oncerunning,theEU-
ETVschemewillimpartacompetitiveadvantagetoverifiedtechnologiesandthereforethatmarket
forceswillencouragevendorstoparticipateintheschemeasamatterofcourse.
Verification
procedures
Registration ofverification
statements
If additional tests
needed
Optional (to
establish contact)
Commission
Verification Body
Technology
Vendor
Contact
oint
Testing
Laboratory
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FigureFigureFigureFigure8888:Anoverviewofthe:Anoverviewofthe:Anoverviewofthe:Anoverviewoftheschemefromtheperspectiveoftheapplicantschemefromtheperspectiveoftheapplicantschemefromtheperspectiveoftheapplicantschemefromtheperspectiveoftheapplicant
5.3.Promotion
Thepromotionoftheschemewillfalltoseveralorganisationsandpromotionalactivitieswouldneed
tobecoordinatedcarefullytoensurethatconsistentmessagesarepresentedtothemarket.Inthe
firstinstance,promotionoftheEU-ETVwouldbetheresponsibilityoftheCVO,actingonbehalfof
theEuropeanCommission.Astheschemebecomesestablished,itisenvisagedthattheVBswill
takeamoreproactiveroleinpromotionintheirareasoftechnologyfocus,actinginconjunctionwith
the TechnicalGroups thatwill beset up. Finally, the NCPs ineachMember Statewill haveanimportantroletoplayinpromotingtheEU-ETVwithintheirowngeographicalterritories.
Claim definition and review
Verification Body reviews claim,
available data and assesses whether
further tests are needed
Assessment phase
Final review of data
Drafting and review of verification
re ort
Testing phase
Elaboration of test plan
Implementation of tests
Test report
If further tests are needed
Publication phase
Approval and publication of Verification
Statement
Contact phase
Vendor contacts a Verification Body
directly or through a contact point
Application phase
Vendor provides all relevant
information, including available test
results and a draft claim
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5.4.VerificationMethodology
A comprehensive methodology for the verification process has been developed as part of theTritech-ETVprojectanditisproposedthatthismethodologybeadoptedintheEU-ETVscheme.
The processwould beweb-enabled in order to ensure efficiency and ease of operation for the
vendorsandfortheVBs.
5.4.1.Introductiontothemethodology
Theprimaryobjective of theverificationmethodologyis togather theenvironmental claims fora
specifictechnologywhicharemadedirectlybythetechnologyvendor.Itwillalsobeimportantto
gatheranyevidencethatthetechnologyvendormayhaveobtainedregardingaspecificclaim.In
additiontocapturingtheenvironmentalclaimsaboutatechnology,theverificationprocesswillbe
setup tocapturecommercial,environmentalandtechnical information relating to the technology
undergoingverification.
Thevendorwillbeexpectedtocompleteaseriesofgenericquestionsregardingthecompanyand
technology, and also input additional information regarding the commercial viability of their
technology, the environmental impact, and the technical robustness. It is understood that some
vendorswillnotbeabletoprovidealltheinformationthatisrequestedinthequestions,failureto
completeeveryquestionwillnotresultinoverallfailurefromtheverificationprocess.
In the first instance, the claims put forwardand completionof themodelwill formallyact asanapplicationtotheETVscheme,andalsoprovideinformationwhichisnecessarytoselectwhether
thevendorisatthecorrectstageofdevelopmenttoparticipate.
Thecoreofthemodelwillbeaweb-baseddocumentmadeaccessiblethroughasecureEU-ETV
website and vendors will be given a username and password to allow the document to be
completedoveranumberofvisits.Thecommercial,environmentalandtechnicalinformationwillbe
gatheredasinformationtosupporttheenvironmentalclaimsmadebythevendorandwillremain
underconfidentialitythroughouttheprocess.Thesupportinginformationwillbeusedbytheexpert
VerificationPanelaspartof thenecessaryduediligenceduringtechnologyverification.Gathering
alltheinformationat thisstagewillreducetherequirementforthevendortobeincontactwiththe
VerificationPanelthereforeacceleratingthevalidationprocess.
The results from each section of the model give an overview of the overall commercial,
environmentalandtechnicalcredentialsofthetechnology.Theinherentcommercial,environmental
and technical aspects of the technologywill be vetted during the verification process to ensure
technologiesthathaveanoverallnegativeimpactareflaggeduptotheVerificationBody.
5.4.2.Selection
ToensurethattherobustnessoftheEU-ETVschemeismaintained,eachtechnologyvendorthatislookingtoentertheEU-ETVschemewillneedtogothroughapre-determinedselectionprocess.
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Theselectionprocesswillensurethattechnologyvendorsareonlyenteringtheschemewhenthey
areatthecorrectstageofdevelopmentandarecommerciallyready.
The vendor will be required to complete a range of commercial, technical and environmentalquestionsthatarecriticaltotheEU-ETVscheme.Thisformstheapplicationontotheschemewhile
providing the VerificationBodywith the necessary information toselectwhether the vendor can
enterthescheme.
Oncethevendorissuccessfultheywillbeaskedtocompletemoredetailedprobingquestionsabout
their company and the specific technology, the vendor will also be asked to document the
environmentalclaimsthattheyarelookingtohaveverified.Thisinformationwillthenbeusedby
theVerificationPanelthroughthemainclaims-basedverificationprocess.
5.4.3.ProcessThemodelisdesignedtogatheralltherelevantsupportingdatathattheVerificationPanelrequire
whenassessingatechnology;afullypopulatedmodelwillacceleratetheverificationprocessasall
informationisavailable.Somevendorsmaynothaveallthedatatocomprehensivelypopulatethe
model. This will not penalise the vendor but further information may be requested once the
verificationprocessisunderway.
ThedetailedprocessisdescribedinAppendix1.Themodelismadeupofaseriesofquestionsthat
fallintofourmaincategories:
Personal,
Commercial,
Environmental,and
Technical.
Eachsetofquestionshasbeendesignedtowithdrawinformationaboutthevendorandthespecific
technology. Although the Verification Panel has the principal role of verifying the environmental
claimsassociatedwiththetechnology,thequestionsrelatingtothecommercial,environmentaland
technicalattributesofthetechnologyhavebeenestablishedtoenabletheVerificationPaneltohave
awiderunderstandingofthevendorandtechnologyassupportthroughtheverificationofclaims.
Themodelhasbeendevelopedwithanelementofscoring,toallowforanobjectiveaspecttothe
model.Eachvendorhasdifferentcharacteristicsand,therefore,thereisnodesiredscorethatmust
bemet tobe considered for the verificationcertificate. The vendorwillbeaskedtocomplete as
manyquestionsaspossible.Acomprehensivemodelwillgenerallyreducetherequiredtimeforthe
VerificationPaneltomakeadecision.
Once the Verification Panel has been through all the information gathered within the model, a
decisionwillbemadeastothelevelofverificationrequiredfortheenvironmentalclaimsmade.ThevendormayhavealreadybeenthroughsignificanttestingatanaccreditedTestCentreandthedata
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gatheredinthemodelalongwithatestcertificatemaybesufficienttoallowtheVerificationPanelto
makeadecisiononverifyingtheenvironmentalclaims.
The scoring matrix will be accessed only by the Verification Panel. The scoring matrix will beautomaticallypopulatedwhenthevendorcompletesthesectionsof themodel.Thescoringmatrix
willautomaticallypopulatetheanswerstoanyquestionsthathaveadefinitiveanswer.Thereare
manyquestions that allow the vendor toenter free text. The scoring isnot designed to takean
objectiveviewofalltheanswersgivenastheVerificationBodywillhavetheexpectedattributesto
assesstheanswersaccordingly.Thescoringmatrixgivesdetailsofhowmanypointsareavailable
perquestiontoallowtheVerificationPaneltoassessthescoringcapabilities.
The scores assigneddocumentwillalsobeaclosed document that can onlybeaccessedbya
VerificationPanel.Thescoresassigneddocumentisasimplerversionofthescoringmatrix,which
will justgive thescores thatthetechnologyhasreceived,givingno reference toalltheavailableresults.TheVerificationPanelcanusethescoresassigneddocumentasaquickreferencepoint;
thisdocumentalsocalculatesthefinalscoringthatthetechnologywillreceive.
AddingcertainweightingcriteriatoaquestionisawaytohelpidentifytotheVerificationPanelthe
mostpertinentquestionswhichholdthemostcredibility.Theweightingwillbeautomaticallyapplied
tothescoringtogivethevendormorecreditforachievingaspecificlevel.
5.5.ApprovalofTestCentres
TestCentreswillbeaccreditedbytheVerificationBodies (VBs)and theVBswillalsoundertake
ongoingmonitoringandauditofTestCentrestoensurethattheycontinue tocomplywithquality
andtechnicalstandardssetbytheCVO.
ThecompetenceprofileenvisagedforTestCentresisgiveninAppendix2.
Aprocess for calling forTestCentresto expressan interest inbeing accredited for theEU-ETV
schemewillneedtobeundertakenduringtheinitialimplementationphase.
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6.6.6.6. FINANCIALPLANFINANCIALPLANFINANCIALPLANFINANCIALPLAN
6.1.Background
The IPTSstudy looked in detail at the costs ofoperating theUSETV scheme andsomeof the
analysisisusefulforinformingthedevelopmentofafinancialmodelfortheEU-ETVscheme.
ThetotalcostsintheUSETVsystemovertimeareshowninFigure9.
Verificationcostsinclude: technology solicitation and selection, development of technology
specific testandqualityassurance plans, technology testing,quality
assuranceandevaluationanddevelopmentofverificationreportsand
statements.
Centresupportincludes: stakeholderactivitiesandmeetings,developmentandmaintenanceof
thequalitymanagementsystem, technologyprioritization,evaluation
andoutreach,privatization(i.e.subcontracting)andothergeneraland
management costs. The costs attributed to stakeholders do not
includeanyremuneration,sincethestakeholdersvolunteertheirtime.
In some cases technology prioritization costs are included in the
stakeholder related costs. Evaluation and outreach costs include
informationdiffusioncosts.
Figure9Figure9Figure9Figure9::::TotalcostsandvendorcontrTotalcostsandvendorcontrTotalcostsandvendorcontrTotalcostsandvendorcontributionintheUSETVsystemibutionintheUSETVsystemibutionintheUSETVsystemibutionintheUSETVsystem
Theriseincostsatthebeginningrelatetowhenthesystemwasbeingsetupandthiswasfollowed
by a relatively stable period from 1999 to 2004. The fall in costs in the later period relate to a
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diminutionof thesystem'sfunds.Thecostsexpendedbyvendors(excludinginkindcontributions)
varybetween10%and18%oftheverificationcosts.
WithregardtotheEU-ETVscheme,therelevantperiodtofocusonisthatfortheperiod1999to2004,duringwhichthecostswererelativelystable.
Figure10shows theaveragedistributionofcentresupportcosts duringthisperiod.Onaverage,
33% of the costs werededicated to information diffusion.28% tostakeholder relatedexpenses.
21%togeneralandmanagementcostsandtheremaining18%wassharedbetweenprioritization,
qualitymanagementandprivatization(i.e.subcontracting).
Figure10Figure10Figure10Figure10::::AveragedistributionofcentresupportcostsintheUSETVsystemAveragedistributionofcentresupportcostsintheUSETVsystemAveragedistributionofcentresupportcostsintheUSETVsystemAveragedistributionofcentresupportcostsintheUSETVsystem
Withregardtoverificationcosts,Figure10showshowthesearedistributedacrossvariousactivities
in the US ETV system during the stable period. Testingwas always themost expenseelement
(35%), followedby thedevelopmentofverificationreports (20%), testplans (18%)andprotocols
(16%).Technologysolicitationandselection,andauditcostsweretheleastexpensive,at6%and
5%oftotalverificationcosts,respectively.
TheUSETVsystemisausefulcomparisonfortheEU-ETVsystemduetothesimilarsizesofthe
USandEUeconomiesandoftheUSandEULCEGSindustries.Inparticular,thecentrecostsfor
theEU-ETVsystemwouldbeexpectedtobebroadlysimilartothoseexperiencedbytheUSETV
system, though the Member State structure in the EU may impose some higher overheads.
Nevertheless,itisreasonabletoassumethatthecentrecosts(relatingtothecostsoftheCVOand
overheadactivitiesoftheVBsintheEU-ETVscheme)wouldbeexpectedtototalaround2million2million2million2millionperyear.peryear.peryear.peryear.
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WithregardtoverificationcostsfortheEU-ETVscheme,thesecannotbeimmediatelycompared
with the USETV system since the latter scheme incorporated testing aspart of the verification
processwhereastheEU-ETVschemewillnot.Inaddition,thedevelopmentofverificationreportsintheUSETVsystemwouldbeexpectedtobehigherthanitwillbeintheEU-ETVschemesincethe
USschemerequiredverydetailedverificationreportsthatwereeditedandpublishedandpublicly
accessible. Taking out the testingelement (35%)and allowing for lowercostsof the verification
reporting,itcanbeseenthattheverificationcostsareslightlyhigherthanthecentrecosts,andit
wouldbereasonabletoassumethattheverificationcostswouldtotalaround2.5millionperyear.2.5millionperyear.2.5millionperyear.2.5millionperyear.
Figure10Figure10Figure10Figure10::::AveragedistributionofverificationcosAveragedistributionofverificationcosAveragedistributionofverificationcosAveragedistributionofverificationcostsintheUSETVsystemtsintheUSETVsystemtsintheUSETVsystemtsintheUSETVsystem
Intotal,byFebruary2007,morethan380verificationshadbeencompletedintheUSETVsystem.
6.2.EU-ETVBudget
Experience in theUSETVandCanadianETVsystemsand in theTritech-ETVpilotschemehas
shown that the cost of verifications vary a great deal depending on the technology area, the
complexityofthetechnologyitselfandtheavailabilityornotoftestresultsofgoodqualityfromthe
beginning.Based on theseexperiencesandon (non-ETV) systems in the EU, preliminary costs
estimatesareintheorderof50,000to90,50,000to90,50,000to90,50,000to90,000000000000perverification.Thisincludesallfixedcostsofthe
system(costsofstafftorunthesystem,costofestablishingprotocolsandqualitysystems)butit
doesnotincludetesting,whichwouldbeundertakenoutsideofthesystemandwithhighlyvariable
costs.Basedonanaverageof70,000perverification,andassumingabedded-downrunrateof60
verificationsperyear,thecostperverificationexcludingthecentrecostswouldbearound40,0040,0040,0040,000000
perverification.Itwouldbeexpectedthattheapplicantswouldmakeacontributiontothesecostsas
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afeefor theverificationservice.Theobjectiveis tolimitthisfinalcosttoapplicantsfinalcosttoapplicantsfinalcosttoapplicantsfinalcosttoapplicantstotheorderoftotheorderoftotheorderoftotheorderof
15,15,15,15,000000000000perverification.
Basedonthesefigures,abudgetfortheoperationoftheEU-ETVcanbeestimatedasshowninTable12.ThisgivesanestimateofthecoststotheEUbudgetanditassumesthatcostsrelatedto
Member States administration (notifying and accreditation bodies, participation in EU-ETV
committeeandtechnicalgroups)andthesetting-upofcontactpointsforSMEswouldbeborneby
MemberStatesbudgets.
The EU Budget would therefore cover the administrative cost related to the EU-ETV in the
Commission(throughtheCVO),thecostsassociatedwithmeetingsoftheTechnicalGroupsand
theAdvisoryFora,VerificationBodiesadministrationcostsandsubsidisationofverificationcosts,
focusedonfacilitatingtheaccessofSMEstothesystem.
Basedonthehypothesis thatthenumberofverification